State Spending
– Total state spending – $291.5 billion ($19.3 billion less than the 2023 Budget Act)
– $208.7 billion General Fund, $80.7 billion special funds, $2.0 billion bond funds
– Total budget – $438.9 billion, including $147.4 billion federal funds

General Fund Spending Compared to 2023 Budget Act Projections
– Current year spending increases by $5.0 billion, from $225.9 billion to $230.9 billion.
– Budget year spending decreases by $16.6 billion, from $225.3 billion to $208.7 billion.

Solving $39.7 billion Budget Deficit – Notable Solutions Identified in Program Sections Below
– $13.1 billion withdrawal from Rainy Day Fund
– $8.5 billion of reductions
– $5.7 billion of borrowing and revenue solutions
– $7.2 billion related to delaying and deferring funding for various programs to future years
– $3.4 billion of fund shifts

In addition, the Governor’s Budget proposes to withdraw $5.7 billion from the Public School System
– Stabilization Account to help offset the impact adjusting the Proposition 98 minimum guarantee to reflect significant revenue decreases in 2022-23.

After Dipping Into Reserves, Remaining Budget Reserves – Total $18.4 billion
– Rainy Day Fund – $11.1 billion
– Special Fund for Economic Uncertainties – $3.4 billion
– Public School System Stabilization Account – $3.9 billion
– Safety Net Reserve – $0

Health and Human Services

Medi-Cal
– $157.5 billion ($37.3 billion General Fund) in 2023-24 and $156.6 billion ($35.9 billion General Fund) in 2024-25 for Medi-Cal (projected to cover approximately 14.8 million Californians in 2024-25).
– Includes $1.4 billion in 2023-24, $3.4 billion in 2024-25, and approximately $3.7 billion ($3.2 billion General Fund) annually thereafter to expand full-scope Medi-Cal eligibility to incomeeligible adults aged 26 to 49 regardless of immigration status.

Rate Reform Implementation
– Delays for one year full implementation of the Developmental Services Provider Rate Reform until its original implementation date in 2025-26.

Managed Care Organization Provider Tax (MCO Tax)
– Proposes early action to amend the previously approved MCO Tax to increase the tax by $1.5 billion, bringing the total cost of the tax to $20.9 billion
to maintain the Medi-Cal program.

Healthcare Workforce:
– Provides no funding for the $25 per hour health care worker minimum wage increase (SB 525, Chapter 890, Statutes of 2023), and proposes early action to make it subject to available General Fund revenue.
– Delays funding for the nursing and social work initiative, and the social work initiative.

Reproductive Health Access
– Includes one-time $200 million ($100 million General Fund) in 2024-25 for the California Reproductive Health Access Demonstration Waiver to support access to reproductive health services beginning no sooner than July 1, 2024.

Education

Prop 98 Re-benching
– Sets the Test 1 minimum guarantee to 39.5 percent of the General Fund as a result of re-benching the guarantee, totaling $76.4 billion General Fund for TK-12.
– Total funding for schools includes $126.8 billion (when including $50.4 billion other funds).
– Per-pupil funding totals $17,653 from Prop 98 funds, and $23,519 from all fund sources.

Local Control Funding Formula (LCFF) and COLA
– Includes a 0.76% cost of living adjustment for both the LCFF and all education categorical programs in 2024-25.

UC/CSU Compacts
– Defers the 0.5% compact base increase ($227.8 million for UC and $240.2 million for CSU) from 2024-25 to 2025-26.

Student Housing Revolving Loan Fund
– Reduces previously planned funding for this program, including $194 million in 2023-24 and $300 million annually beginning in 2024-25.

Middle Class Scholarship
– One-time reduction of $289 million in 2024-25.

Childcare Slots Expansion
– Includes $2.1 billion for the Department of Social Services to fund 146,000 new childcare slots (goal to fund 200,000 new slots by 2026-27).

California Child Care Providers United (CCCPU) Agreements
– Includes $723.8 million General Fund to implement recently ratified agreements between the CCCPU and California.

Resources and Transportation

Forestry & Wildfire Prevention
– Proposes no new wildfire prevention spending, but:
o Cuts $43.5 million General Fund from the Biomass to Hydrogen/Biofuels program.
o Cuts $12 million from the Home Hardening program.
o Cuts $5.3 million from the Prescribed Fire and Hand Crews program.
o Shifts $162.5 million of various fire prevention programs from the General Fund to the
Greenhouse Gas Reduction Fund (including Fire Prevention Grants, CalFIRE Fire Prevention Projects, and Regional Forest and Fire Capacity).

Water
– Cuts $1.4 billion General Fund from a variety of drought resilience and wildlife protection programs, and does not allow for expected fluctuations in statewide water conditions with any new spending for water storage capacity. New funding includes:
o $159.1 million in flood protection, levee repair, and restoration of the Salton Sea.
o $31.3 million General Fund for Central Valley flood risk reduction projects.
o $29.6 million General Fund for 2023 storm damage repair on state-owned Delta lands.

Clean Energy Transition
– No new proposals that would increase energy affordability for consumers.
– Proposes to reduce a variety of energy portfolio programs by approximately $1.3 billion, including:
o Delaying $50 million for the Distributed Electricity Backup Assets program for grid reliability to future years.
o Delaying $55 million General Fund for the Electricity Supply Reliability Reserve Fund Program to future years.
o Delaying $200 million General Fund to 2028 to fully fund the Residential Solar and Storage Program.
o Cuts the Clean Energy Reliability Investment Plan by $800 million in 2024-25 and 2025-26.
o Shifts $56.9 million for the Long Duration Storage program from the General Fund to the Greenhouse Gas reduction Fund.
o Cuts $6.4 million to programs to convert homes to using all electricity.

Broadband Connectivity
o Includes $250 million General Fund in 2024-25 for the Department of Technology to complete development of the statewide middle-mile network.
o Delays $100 million General Fund for Last Mile Infrastructure Grants to 2026-27.
o Reduces by $250 million funding for the Broadband Loan Loss Reserve Fund.

General Government, Housing, and Homelessness

Business and Taxation
o $50 million General Fund ($60 million total) in 2024-25 for a third year of the California Competes grant program.
o Several tax proposals seek to increase revenue by $402 million in 2024-25; including:
– Net Operating Loss conformity to federal law ($300 million).
– Eliminates deductions for gas and oil taxes ($22 million).
– Eliminates tax deductions for charitable conservation easements ($55 million) and bad debt ($25.3 million).

Housing and Homeless
o Cuts approximately $1 billion from a variety of housing related programs that have been the recipient of increased funding over the past three years.
o Commits no flexible funding for local governments to combat homelessness despite last year’s budget intent to provide $1.2 billion in Homeless Housing, Assistance, and Prevention program (HHAP) funding in 2024-25.

Labor and Workforce
o Reduces a variety of recently enacted workforce development programs by $100 million General Fund and delays a total of $734.5 million of funding to future years.
o Proposes a three-year plan of $81.3 million and 84.0 positions to increase the ability for state departments to enforce, educate and respond to workers’ rights.
o Includes $331 million ($231 million General Fund and $100 million Employment Training Fund) to pay the annual interest payment on the on the federal Unemployment Insurance loan balance.


Public Safety

California Department of Corrections and Rehabilitation.
o Delays $27.2 million General Fund for the installation of fixed cameras and body-worn cameras at five prisons to 2025-26 and 2026-27.

Criminal Justice Related Fee Increase, Loans, and Reductions.
o Increases the Controlled Substance Utilization Review and Evaluation System (CURES) Fee from $9 to $15 as of April 1, 2025 for medical professionals. This fee was just reduced in July 2023 from $11 to $9.
o $100 million loan from the Cannabis Tax Fund to the General Fund, this money should be used by the Board of State and Community Corrections to provide grant funds to local governments to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with cannabis.
o $9 million General Fund reduction in the Cal VIP Grant program, replaced by the Gun and Ammunition Tax (AB 28, Statutes of 2023).

California Office of Emergency Services (Cal OES)
o Reverts $45 million to the General Fund from community hardening efforts.
o Reverts $15 million to the General Fund from Seismic Retrofitting Program for soft story multifamily housing.
o $21 million reduction from the Gun Buyback Program at Cal OES and $20 million from the Judicial Council Firearm Relinquishment Grant Program.



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